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 We’re so focused on the costs that we don’t often look at the benefits that come with those costs, and I think that’s one of the biggest differentiators. It’s one thing to just look at a cost, it’s another thing to say is this additional cost. If I were to look at it as an investment, what is my return going to be?

What would your life look like if you could replace all of your working income with simple and conservative? That could do it for you. Over the last 13 years, we’ve helped thousands of clients transact over half a billion dollars in simple and conservative real estate transactions, allowing them to begin replacing their work income with real estate investment income.

Each week we’ll be pulling back the curtain on the ins and outs of realtime retirement based real estate transactions that will transform your financial future. Even if you have no real estate experience, this is replace your income with. Kevin Clayson and Steve Roll. All right, well, hello everybody and welcome to Replace Your Income with Kevin and Steve.

How’s it going, Kev? Oh, what’s up man? I, uh, I thought you fell asleep for a second. Did you fall asleep for a second? Uh, no, but there may be a little bit of a delay because we are doing this very remotely. Okay, so let’s blame it. On the delay, we’re gonna pretend like we are nationally syndicated radio hosts, and there’s this delay that we’re having to deal with.

This is like the Howard Stern show. Um, and we’re d but we’re professionals. So we’re just gonna go right on. We’re gonna go right on along. Sound okay to you? Yeah, you got it. , if they could see the video, it would be like one of those videos where, you know, the, the, the, the lips and the mouth move. But, uh, no, no words are coming out until, you know, delayed two or three seconds after.

It would be like an old Bruce Lee movie. Yes. Yeah. Which, which, uh, listen, let’s, we should do an entire episode on Enter the Dragon. When was the last time you saw Enter the Dragon? I used to. Bruce Lee’s, uh, I had a poster of Bruce Lee enter the dragon on my wall as a little kid, and he had those like four, like gashes across his chest and, uh, I mean, classic, classic show.

He, he inspired me as a kid. I did not know this about you, but I remember watching. Enter the dragon in those Bruce Lee movies with my dad. And I thought it was the coolest thing ever. And, uh, that’s probably why I, I, like, I still watch that stuff today and it’s also probably why I use my children, um, as examples so that I, I just try to like, I don’t injure them, you know what I mean?

But it’s like I still wanna practice my karate and feel like I’m cool, you know? Is that appropriate? Is that okay to do or should I, is that not okay? Well, It, it’s a problem, Kev. Yeah. You don’t wanna do that . Oh, man. Well, the real problem is that we haven’t done a podcast in a couple weeks because there have been so many awesome things going on.

Um, the world is shifting rapidly in real estate, in real life. Um, we are recording this. Right before the election. Uh, and, and so we’ve got a big election coming and the world feels topsy-turvy. Real estate is literally changing at, at the speed of sound it feels like. But that’s why we’re here to talk about something today that we think will be really effective for everybody out there, cuz what we’re gonna talk about today.

Steve, as you know, it’s not just a principle for now, it’s a real estate principle that can honestly increase ROI and maybe give you a little bit of a different perspective. When it comes to real estate and that’s why we want to talk about it, that’s why we want to dive in. But it maybe is even more appropriate today with the changing real estate environment than, than it maybe even is at other times.

And so we’re gonna dive into it today and talk a little bit about it. Cuz Steve, we love to talk about real estate in a way that the world, you know, we look at the world of real estate, we look at the world of investing through a slightly different set of. Um, probably thanks to Bruce Lee and enter the dragon.

I’m just gonna assume that’s the reason. So we’re gonna talk about something today that I think is, is gonna be a lot of fun. Well, Kev, I mean, the reality is that real estate is constantly changing. That is, you know, the one constant in real estate is that it is constantly changing. And so as investors, we have to constantly adapt.

We have to constantly take a look at where we are in this, in the real estate cycle. And what’s really cool. At being at the stage that we are in the life cycle of our company is, we’ve been around near for nearly 15 years now, and so we’ve seen the market crash back in oh 8, 0 9. We saw it recover. We saw it go crazy.

We, we, we’ve seen it do what? It’s, it did during covid and, uh, and now just recently with, with crazy inflation and crazy low interest rates. And now, uh, you know, the, the rise of interest rates and, and where we’re at in this cycle today, Kevin really, um, is reminiscent of, of when interest rates were actually really low.

Um, it, I mean, they’re really high rate now. A potential solution to the issue that we face with, with, with higher interest rates and which is the cause of lower cash flow is, is a very similar remedy to when interest rates were, were really low. So let me kind of explain, uh, what I mean, Kevin, and that is, When, when interest rates began to drop and, and they got to these historically, you know, low levels, um, there was an opportunity to refinance.

And, you know, some of, some of our clients, rightfully so, you know, had the question. It’s like, well, I just barely bought my, my real estate a, you know, a year ago, or six months ago. Or two years ago. And so in real estate, it, it takes you a a few months to recoup the costs of closing. And so to just jump into a refinance.

And take on those additional closing costs. Again, I mean, it’s, it’s an expense, right? And so many of our clients looked at it from the standpoint of it was an expense. And so what we did is we, we took a few minutes to help our clients understand that the reality of refinancing and the cost associated with it was really just an investment.

So, for example, you know, uh, just a year ago as people were, were trying to refinance into lower rates, Let’s say that it was, you know, a cost of $6,000 to refinance. Well, we would take a look at what the savings would be. So if somebody refinanced from, call it four and a half, or five and a half percent down to, you know, three and a half percent, we would calculate what that new payment amount would be and what the monthly savings would be.

And then based on the cost, let’s say that the cost was $6,000 and the savings per month was, let’s say 200. You know, very quickly you could say, Hey, you know, I’m gonna spend this money, the $6,000 I’m gonna divide by the cost of, uh, or the month, the increased monthly cash flow of $200, which is $2,400.

Per year. So you take the, uh, $2,400 divided by that $6,000, and that’s 40%. So if you look at, at that from an investment standpoint as opposed to a cost standpoint, the individuals who chose to refinance were making 40% on their money. And if you take that $6,000 and divide it, You know, the savings of $200 per month, that’s 30 months to break even.

So within 30 months, you know, you’ve recouped that, call it, you know, cost, or you’ve recouped your initial investment of $6,000 in 30 months, and along the way, you were making 40% on your money. Now, once you’ve recouped that full, you know, $6,000 investment, now your return on investment is infinite. So Kevin, here’s the.

how do you, how do we apply that same principle to what’s going on today? Because with interest rates, you know, hovering, you know, right around seven and a half percent, seven and a quarter percent right now for an investment property. Here’s the question is, could it make sense when you purchase a new property to secure a lower interest rate by buying that interest rate?

Okay, so there’s a cost associated with buying that interest rate down, and I would, you know, propose to you that it’s not really a cost, it’s an investment. Okay? So this is a really critical mindset shift, and this is one of the things that we absolutely wanna talk about today, which is, so often we look at aspects of investment and we go, well, how much more is it gonna cost?

But, but we don’t often realize, Even the shift in, in the languaging of cost and investment can change how we interact with the investment. See, if we were to look at the, so when we talked about refinancing and we talked about a cash out refinance, and when people would look at it and say, oh, well there’s a cost associated to it, when they would instead look at it and say, well, if I make an investment in a lower interest rate and a higher cash flow, what’s my return on in?

That is an entirely different conversation and it feels different. And when we look at interest rates, so you know, I’ve got a mortgage background and so often when it comes to loans and when it comes to closing costs, we are so focused on the costs that we don’t often look at the benefits that come with those costs.

And I think that’s one of the biggest, uh, differentiators. It’s one thing to just look at a cost, it’s another thing to. Is this additional cost? If I were to look at it as an investment, what is my return going to be? Am I going to be better off financially by investing this money or whatever this, you know, if we wanna call it a cost, and that’s what we’re talking about with buying down an interest rate on an investment property or on an investment loan.

And the analogy that I think of, Steve is, uh, so do, do you remember I went to Disneyland back in June? Do you remember that? Like right after the kids got outta school? Ok. So when I went to Disneyland, I, I kind of had a beef with Disneyland. I think you’ve even talked about it on the podcast where. I’m kind of mad at Disneyland that like you have to pay for fast passes now, right?

Like I used to go to Disneyland and used to just go walk all over the park and you’d put in your little ticket and they’d kick out a little fast pass and it would tell you what time to come back to the ride. And I always loved that cuz I got really good at like planning out my day and then we, which rides to get a fast pass at and then all of a sudden Disney is like, oh, you know what, COVID, we’re not making enough money because.

$16, Juro isn’t enough money to make. So then they said, okay, we’re gonna charge for fast passes, right? You’d have to walk into the park and along with the ticket that you already spent, whoever knows how much on you could spend an additional $20 per person to be able to, uh, to have a fast pass for the day to be able to use.

Phone and get your fast passes so you didn’t have to wait on all the lines. And I was like, but as a matter of principle, I was so mad at Disneyland that I was like, if I go to Disneyland, I’m not gonna buy this Genie Plus thing. Forget it. This is so stupid. Okay, look, I went to Disneyland, we went one day without buying the pass.

And I was like, uh, yeah, we’re gonna need to go ahead and pay the extra hundred dollars a day for my family for this pass. And here’s the reason. When I shifted my thinking from this paying this extra cost for Genie Plus to investing in my family’s happiness, that, and that was, that was honestly the shift.

It was like, okay, look, we’ve already spent the money. We’re here at Disneyland. We’ve already spent the money for the hotel. We’ve already driven here. We are already having this wonderful experience, but how do I make it even better so that my kids are not as bugged while they’re standing in line? How do I make it and all?

When we, the first day we invested in Genie Plus, my kids thought it was the coolest thing ever, Steve, cuz we’re just running in one line after the other. And like, this is amazing. And they had this entirely different, amazing experience. And I started to think about other aspects in my life where in the past I thought of it as a cost.

But if I were to shift my thinking into, I’m gonna make an investment in this better experience, um, a a and, and what am I gonna get for that investment? Is that gonna well offset the investment that I’m making? And I started to think about real estate in the same terms, and that’s what we’re talking about here today, is if you look at buying down your interest rate, like investing in a a Disney fast pass, the concept is.

If I were not to ex, uh, look at it as a cost, but if I were to go close on a purchase and I were to spend a little bit more money of my total out-of-pocket expenses to buy down my interest rate, to increase my cash flow and overall have a better return on investment, if my return on investment, um, I I is better, and if I’m offsetting my investment or my cost within just a couple years of even making the investment in the first place, all of a sudden now, Experience for the entire lifetime of the investment is much better just like it was when I invested in Genie Plus.

And that’s what we wanna talk about today. We wanna let everybody know that right now in this current interest rate environment, there is a way to lower your interest rate. Now look, you’re not gonna buy down your interest rate to 2% like it was, you know, a year or two ago, but we are gonna go through some numbers and we’re actually gonna invite.

Special guest on who actually knows this is doing this every day as he’s looking at it with our account executives and with our clients. We are gonna have Nathan Larson come on, and we are gonna talk a little bit about what are the real numbers. If we were to really look at a single investment property, and we were to take it to the moment of, I’m ready to close on this investment property, what’s my potential proforma look like?

What do my numbers look like? What’s the the property game plan look like? And then if I were to buy down my rate, how much extra is it gonna put into my pocket? And how long will it take me to offset that investment in order to make it? Over the long run. And so we are gonna have Nathan Larson come on today and talk a little bit about this before we bring him on.

Steve, is there anything that I missed in the description of, of what’s cool about an interest rate buydown or that analogy of using extra dollars at Disneyland to incre or to improve my family’s experience? Is that, is that a, is that an appropriate analogy, do you think? Yeah, Kev, like I, I actually, I really like that as an analogy.

Here’s, here’s the one thing that I would add. Your Genie Plus experience lasted for the day, right? It was, it was a temporary, uh, investment that paid big dividends. And I guess really, you know, it was temporary in, in nature, but the memories, the memories will be like long, long lasting. Right? And so I think it’s an appropriate analogy.

If I were just to share real quickly, you know, even while the interest rates were low, I, I refinanced, one of my properties is, is a bigger property. And it was interesting. I went to my loan officer and I was like, Hey, like I’ve got this killer interest rate that, that, that you’re getting. But is there a way that I could, you know, decrease it anymore?

And we, and that’s when we kind of talked about buying down points. So even though the interest rate was already crazy low, I went ahead and Kev, I actually spent nearly 10,000 extra dollars in closing to buy down my rate even more because I, I did this calculation that I shared with you earlier where not only what did I pay for the cost to refinance my property, but in addition to that, I actually paid.

To buy down that interest rate. Additional because there, there’s kind of like a, a sliding scale, right? There’s a, what, what’s called a diminishing rate of return. So depending on where you’re at in the scale, like you can get a bigger bang for your buck. So like you just said, you can’t like just buy your rate down to two because it would get so expensive that your return on that buy now wouldn’t be worth it.

But there’s kind of like magic points along the scale where you can maximize your buy. In terms of cost and benefit. And so I bought Mike kind of figured out what that, uh, that cost benefit analysis was and figured out what the, where I could get the biggest bank for my buck. And I, I went ahead and did that, and so I got this, you know, absolutely incredible rate.

But the coolest part is when I calculated my cost versus what my return investment was. It was significant. So that’s what we’re gonna be talking about today. I’m, I’m excited to have, uh, Nate, come on here as well. Um, Nate is our manager over our account executives. And, uh, he’s constantly working on, you know, different, uh, you know, ideas such as this.

And so he’s put together a number of examples that we’ve asked him to share, uh, with us, uh, in terms of. Of real, of getting into the specifics of what this could mean for investors today, purchasing, you know, single family homes in the markets where we actually buy. So, you know, without further ado, uh, Nate, uh, welcome to the podcast.

Thanks for taking time to being with us today and taking time from, from your busy schedule to, uh, you know, talk to our audience today about this, uh, powerful tool that we have at our disposal. Stephen, Kevin, thanks. Yeah, it’s great to be with you. It’s an honor and a p. Glad you better be honored. It is a privilege.

I mean, you’re, you’re on the recorded podcast with the Steve Earl, c e o of done for you Real Estate. Nate, I mean, do you realize that’s a big deal? I know it is. It’s phenomenal. I think I need to have him autograph my Done for you hat or something like that. That’s a good idea. I’ll do that the next time.

You just. Pop into my office. So honored to, uh, that’ll be in my presence, . And, uh, and, and Nate, if you don’t have a hat, I know Steve well enough to know he’d be happy to Sharpie sign your forehead. He’d do that for you. I do that and I’ll take a good picture of that. So Nate, you know, some of the examples that you’ve put together and, uh, some of the insights that, that you’ve discovered, you know, as you’ve been, um, you know, uh, working this, this, this concept.

Yeah. Yeah, it’s actually really exciting. And maybe just our disclaimer upfront. I mean, obviously, you know, we have our own mortgage broker, but you know, I’m not, and Steve and Kevin are not mortgage brokers, and so not quoting rates or anything, so we’re just gonna use estimates here on some of these properties.

But it’s, yeah, it’s, it’s so fun working with, you know, clients and our properties and really crunching numbers. When you, when you start really looking at the numbers, the numbers don’t lie. They, they tell the story and, and, and really what a, how a property, Gonna perform for you, basically. And so, so you know, if we use what Steve had talked about, let’s just say an estimated rate on a seven and a quarter percent, that’s about where rates are at right now for investment properties.

And, you know, we took that rate, we plugged it into a property down in central Florida that we recently did. It was a two $46,000 purchase price for this property, 1850 in rent. I mean very, very typical property and deal of what we do. You know, the net monthly cash flow on that was about hundred $63 a month, basically.

And that’s at seven. You know, percent rate. And so in working with lender, our lenders in saying, Hey, if we wanted to buy that rate down, what would be the cost for this? And so estimated buy down, it’s gonna vary a little bit per rent, per lender, and then also by purchase price as well. It’ll be, you know, if the purchase price is a little bit higher.

Uh, you know, that buy down rate or that the amount to buy down the rate’s gonna be a little bit higher and so forth. But on this one we estimated it’s gonna be about $3,400 to, to buy down that, that rate basically. And so what that equates to though, that’s that buying it down to a six and half percent rate.

And so that takes cash flow from $163 a month to $255 a month. Actually it’s about $92 a month, you know, increase basically. Of, of what you would see in cash flow. It’s a, if you, if we look at just a straight cash on cash return, it’s 2.45% at the seven and a quarter rate, and it at 6.5%, it takes it up to a 3.7% cash on cash return.

And so, so there’s a, like you said, there’s a cost to do that. However, and this comes back exactly what you were talking about with, you know, cash out. Is, Hey, what’s, what’s the cost to do that? We, we look at a break even. So if we, if we paid that extra, you know, cash to, to buy down that interest rate to six and a half percent, you know, increasing our cash flow, how long would it take to recoup that, that $3,400?

And so it’s gonna be approximately 26 months, just over two years. And so based off of what we’re doing with our, with our pro, you know, properties, we hold those for a good 5, 7, 10 years. You know, you look at that and say, Hey, Does that, that makes sense to, to buy that rate down to that amount to improve my cash flows.

And so, yeah, so it’s a powerful concept and you know, I kind of feel like saying, you know, like they do on, on the infomercials, Ken, what do they say? Um, but that’s not all folks. That’s not all. You know, uh, Kev, do you wanna kind of introduce, oh wait, the other thing is, and wait, there’s more. That’s what it’s, yes.

And wait, there’s more. and Kev, do you wanna kind of introduce what it is that we’re, that, that for a limited time we’re, we’re looking at doing with our clients. Yeah, absolutely. Okay, so this is, so this is awesome. Okay, so first of all, let me just restate Nate, what I feel like I understood from what you shared.

Cuz we all know here that I’m the dummy in the room. So, so if, if I can understand it, I think that most, uh, other people can too, cuz most everybody is smarter than me. Uh, so if I were to, if I have a property under contract, which. Coincidentally do, and I look at it and I say, okay, we wanna buy down the rate, so I’m gonna pay what, in your example date, it was 3,400 extra dollars.

Right. To be able to buy down the rate. That’s right. And I’m buying, and I’m buying down that rate from what to what? From seven and a quarter to six and a half. Okay, so I’m saying, look, I don’t love that there’s a seven and a quarter interest rate right now, and I’m saying, okay, but if I were to contribute $3,400 additional money at closing, I can buy down that rate from 7.5% to 6.75%, correct?

No, yes. Six, 6.5% actually, oh, 6.5, sorry, 6.5%. Sorry. So I, I, I have a 75.75 rate. Right. Yeah. Yeah. Um, for $3,400. Now, when I do that, my cash flow then moves from what to what? It increases from 1 63 a month to 2 55 a month. So about 90, $92 a month-ish or so. Okay, so at first pass, and maybe this is what somebody listening is EX is experiencing, I, you might be thinking, well wait a second, so I’m spending $3,400.

To gain an additional $90 a month in cash flow right now. I, I think that some people might be like, well, wait a second. Am I willing to pay 3,400 for an additional $90 of cash flow? But, and to your point, if you were to just say, all right, look, because when we take a look at what the cashflow might be in year one and, and potentially what it might be in year two, the break even on that was how long.

Now you’re about 26 months to recoup that, that cost for the buy down. Well, I’m, I’m gonna, I’m gonna kind of correct that actually. So it’s a hundred dollars per month in savings. So it’s actually closer to 36 months. And Nate, what you’re referring to is the, uh, and wait folks, that’s not all. Oh, yeah. So, so it is about 30, uh, it’s about 30.

You know, ish months to recoup that out-of-pocket cost. And the other thing to calculate is the actual return on investment. But I think we’ll wait until, you know, we have a little more clarity on, on, on some of the other things that we’re gonna add to this. Yeah. And so the, so the reason why I’m going through this exercise is so, okay, here we go.

It’s gonna take, if I were to go through this process, I’m gonna spend $3,400. I’m gonna buy down my rate, ju a little bit less than a percent. I’m gonna increase my cash flow by $90 a month. That’s gonna take me approximately three years to be at a breakeven, meaning, After three years of an additional $90 cash flow, I will have made back my $3,400.

But the good news is at that point, I get to keep my additional cash flow right. I’ve made my money back, and now for the next. 5, 6, 7, 10, potentially, who knows, 30 years or whatever the case may be. I’m paying $3,400 to get 90 additional dollars in cash flow, but I’m owning that additional cash flow for the lifetime of the investment now.

And Kevin, can I just add one additional thing there? Sorry. Yes. So, and this is an, this is a really critical and important and kind of fun part of this conversation, is that if you take that approximately a hundred dollars a month in additional cash flow, Multiply that by 12 months. So you’re making, you’re earning an extra $1,200 per year.

So you take that, you divide that by the cost, which was about $3,400, and the return on your investment, Kevin, is 30 over 35%. So that’s like me coming to you, Kevin, and saying, Hey, hey Kev, if you’ll loan me $3,400, I’ll pay you 35% on that money. Would you be willing to do. Exactly. And that’s a great point, Steve.

So sometimes we need to silo our returns. And this is a concept that I think is really important. There’s so many ways to evaluate a property and there’s so many ways to evaluate, um, how we wanna look at returns and what’s. Steve is talking about is a siloed experience where we are siloing how much we’re paying and what that increased cash flow is.

Now, it’s obviously gonna change the overall percentage of return across the board, across the lifetime of the property. But to Steve’s point, if somebody said, uh, okay, hey, I’m gonna lo, or you loan me $3,400, I’m gonna pay you 35% on your $3,400. I think just about anybody would take that. And what you’re effectively doing is by buying down your rate with $3,400, when you look at the increased cash flow o of what effectively is paying back those $3,400, that’s the return that that Steve is talking about.

So we’re not saying that your property’s gonna have a 35% return. We’re saying that on that. Additional investment of $3,400 with the increased cash flow. If we silo that experience, you are seeing like a 35% return on that $3,400 based on the increased cash flow. So when you silo it, it makes it really, really cool and you can see why it’s a reasonable and good investment.

But now we get to it. But wait, there’s more. And that’s not all what? What if it wasn’t $3,400? What if everything we just described, okay, the $3,400 giving you a $90 of additional cash flow, what, what if instead of $3,400, you were getting that same exact benefit, except you were only contributing, let’s say $2,400 and instead of you taking like 36.

To be made whole again, so on, so to speak, right? Instead of taking 36 months to recoup the additional cost, what if it was more like Nate said earlier, more like two years worth now, if you could get all the same benefits but only have to contribute 2,400. So all the same benefits, but only have the payoff be 24 months instead of 30, uh, 36 months.

And I don’t know what the percentage return would be, Steve, but if it was 35 ish, 45, Yep. So if you could go from a 35 in that siloed example, if you could go from 35 to 45%, if you could get all the same benefits of the increased $90 of cash flow, um, for $2,400 instead of $3,400. If you could have the payoff of your additional investment come in 24 months instead of 36 months, who would not do that if it already made sense?

By you investing 3,400, what if you only had to invest 2,400? And this is where we get to make an. This is a one. This is a very limited sort of thing. We have never done this before in the history of done for you real estate. I don’t know if we’re ever gonna do it again. We, we don’t even know how long we’re going to do this, okay?

But this is something that is available today as you listen to this. And so if you’ve been fence sitting, if you’ve been wondering if you need to move forward, if you’ve been considering, I need to get going to real estate, but I don’t know what’s going on with inflation in the economy, what if I told you.

That done for you real estate would be willing to contribute to that additional rate buy down. So instead of you contributing 3,400, you’d be contributing 2,400 and done for you real estate would be contributing a thousand dollars. Now would it make more sense? We’ve never done this in the history of the company, Nate.

Steve, tell us what this means and why this is beneficial. Well, it, it’s a pretty cool concept. Um, when, when you think about it, it’s like, wait a minute. In a high interest rate environment, you’re, you’re telling me that, that I can get, you know, around three quarters of a point for a $2,400 buy down. So basically, you know, done free real estate is, is matching up to a certain amount, you know, my efforts to buy down my interest rate.

Well that’s exactly what we’re doing. And, and it, it’s, it’s one of those, those things where, where. We know that the philosophy by which we approach real estate works basically in every. Real estate market, um, environment. And when you hold the property for five to 10 years, it just works. But we also recognize and understand that we’ve come from such a, an area of, of real estate investing where everything was just perfectly aligned, where everything was like almost too good to be true.

It was ponies and roses. You know, for a short period of time. And I think that we all got a little bit, you know, spoiled and so to, to shift back into more of a standard environment. Environment that. That doesn’t look quite as rosing and, and pretty as it, as it once did, uh, just recently, you know, it takes a little bit of a transition.

And so our thought process is to, you know, help our clients ease back into the mindset of, hey, you know, these interest rates, they’re not showstoppers. And in fact, real estate works at these different higher interest rates. But if we, you know, if the market could have shifted a little bit more slowly, but we literally, in a period of.

Went from 3% to seven and a half percent, like literally in months. And so we’re just trying to ease that, you know, that uh, that mindset shift just a little bit by making this, this offer, you know, to our clients to help them kind of ease back into a little, a little bit and to help our clients understand and to see that we’re in this with them, that we are believers in this program.

Kevin, you and I sat down across from, from, uh, one of our clients, just the other. We were talking about what’s going on in, in the market, and it was interesting for us to be able to say, it’s like, Hey, in this environment, you know, you and I have continued to invest individually and uh, uh, collectively as a company as well, buying properties using the D f Y methodology and, and services and, and, and, uh, the, the exact same system that our clients do.

And it was clear to us that it really was just more of the, this. Set shift that, uh, individuals kind of need, you know, needed just a little bit of time to kind of make that shift to, to understand that the sky’s not falling and that, uh, this is as good a time as ever to be investing in single family homes.

When you are intending to hold that property for five to 10 years, and so that’s kind of the why behind we thought that this might be a way to help our clients, you know, continue to take next steps and to to move forward with their investments and to work towards that. 10 property goal, where with 10 properties, you know, you’re, it essentially economically independent.

And we see our role as a company and as individuals. To help our clients continue to move forward and, and to not just sit on the sidelines and miss out on opportunities and get sidelined to where they’re not taking advantage of, of a market where it is still a awesome time to buy real estate. There is still massive demand for single family homes.

The three bed, two bath, two car garage, they are still flying off the shelf. They’re just. Getting 35, you know, offers all in, you know, in, in the first hour of being available, but they’re still being sold within days or a few short weeks. And so it’s a little bit more of a normal, normal market. It is, it’s not what, uh, we’re hearing.

You know, on, on, on the media word, like the, the sky is falling. It just isn’t the case. And so I, I believe that this is just a great tool, a great way to and perspective to, to look at at real estate and the buy down program and how we can continue to move forward and to work towards that 10 property and economic independence.

Yeah. And can I just add to that real quick, Steven? Yeah. Yeah. Go ahead. Yeah. You know, and as, as we work with clients, I mean, in, in today’s environment, I mean, there’s so much moving with real estate. And so rates, though, rates really have, I shouldn’t say clients have a lot of fear of rates, especially when they’re, they’re moving the way that they are with the Fed.

Just meeting, you know, again, last week, you know, raising rates, things like that. This, this, this whole opportunity. I mean, really helps take the sting out of, out of, you know, the higher interest rates basically. Um, and, and I totally agree with what, what Steve said. When, when we look at our clients and what they’re really trying to accomplish, I mean, the real magic with real estate starts to happen when you start to hit five and 10 properties.

And like, like, uh, Steve and Kevin have mentioned, you know, that economic independence really starts, that magic starts to happen. And so, so when you look. The long-term plan with real estate and trying to hit that five and that 10 property mark, you know, you know, the rates don’t, don’t matter as much as people really think they do, but really to help soften the blow of what we’re seeing right now is, is, you know, buying that rate down.

You know, a little bit of help with doing that. Like I said, helps take the sting out of, out of those higher rates basically. So, really excited about it. Makes a lot of sense. You know, there’s a song going through my head, guys. Do you wanna know what it. Yes, we share just a spoon full of sugar, helps the medicine go down.

The medicine go down. Because listen, when we want our kids to eat something that maybe they don’t like, but we know what’s good for ’em, , we try to sweeten the deal a little bit. Right? So look, here’s, this is an experience that Steve and I had the other day. We were and, and then we’ll, we’ll wrap this episode cause we want you guys to not have to listen.

We want you to jump on the phone. We want you to email us. We want you to get in contact with your account executive. We want you to go to dfy dash real estate.com and and click a button to book a call so that we can talk a little bit more about this because we wanna get this in your lives so that you guys can move forward and realize that it is always a good time to buy real estate.

We’ve preached it forever on this podcast, and the other day we had an experience where we were talking to a. And, uh, this client of ours, Steve, if you remember, he, he asked the question, he’s like, well, you know, I got some money. I mean, should I be investing right now? And Steve and I had the same exact response in our brain, right?

And that response was, yes, of course. Who wouldn’t be buying right now? You absolutely should. And I, and I had the question come to my mind, why is our response yes, absolutely. Why are we continuing to buy when so many other people are scared? And here’s one of the things that I’ve. All of the doom and the gloom in the world right now.

Everybody telling you that you shouldn’t be doing real estate, they are probably not doing real estate. Okay? Meaning they are. Sometimes we call ’em the tiny pocket brigade, right? It’s people that love to sit on the sideline and tell you what you should do with your money, cuz they’ll never do anything with theirs.

And they’ll tell you everything that they heard on the latest podcast or on the latest news, and we are constantly battling. Perpetual information coming from the world telling us Don’t do it. Get out. Be scared, be fearful. And so we thought, what if there was a way that we could make this just a little bit more bearable?

Because we understand that it doesn’t necessarily feel comfortable to do a seven and a half percent interest rate within when, within just a couple years. That’s. Three, 4% higher than it was. We know that. But listen, it shouldn’t be stopping you from doing real estate because the overall benefit that comes from real estate, the long-term benefit by stacking up micro wins to gain millions by working towards 10 properties and economic independence.

If you could get to 10 properties, if you could declare economic independence, it does not matter what the economy was when you bought those homes. It does not matter what the interest rate was. And what we don’t want is we don’t want people postponing their future for an uncertain today. And that’s really the key.

And so if there’s just a little bit of, uh, a spoonful of sugar can help the medicine go down, then what we want is we. Remove one additional little obstacle for you to say, okay, I can get a little bit of a lower interest rate, a little bit of a higher cash flow. It’s gonna pay for itself in a much shorter timeframe.

This is a really limited opportunity that done for you real estate is giving me to be able to jump in and do something so that. You are not feeling like everybody around you telling you that you shouldn’t be doing it. As they sit on the sideline and watch their stock market, uh, their 401k decline, or as they sit on the sideline and watch the prices of everything go up, and they don’t do anything about it, as they sit on the sideline and they complain about the government and complain about the economy, and complain about the interest rates, and complain about the recession, and all they do is sit on their hands and complain as opposed to taking real definite major action in order to shift their life.

And so if it. That we go and match some of the contribution. If it means that we assist with the, with the interest rate buy down so you can get off the sideline and get your next property or get your first property. That makes sense to us. Cause our, what we are trying to help you accomplish is much more than a simple real estate transaction.

It is economic independence. It is the power of 10 properties. It is replacing your income one property at a time, over time. And so what we want for. It’s just if we can remove one barrier to help you get going, we know what that will mean for you in the long run and in the short run. And so we are super pumped to be able to announce this, but like we mentioned, it is limited.

We don’t know how long we’re gonna do this. We know it’s something we wanna do right now. So my encouragement for you would be to go to dfy real estate.com, click on the book a call button, chat with us. We have a little chat button right there on the website. You can chat directly. You can email your account executive, you could email, uh, you could email just our general email.

You could call our phone number that’s on the website. However you wanna get in touch with us. We wanna talk to you and, and show you what these numbers look like and show you what it could mean to do real estate right now and not sit on the sideline with a tiny pocket brigade, uh, complaining about everything in living in a perpetual state of uncertainty as opposed to a perpetual state of action taking that creates something magnificent for you and for your financial.

So, uh, I’ll just step off my soapbox. Anything you guys wanna add there? ? No, I love it. Kev, I love your passion and, and, uh, commitment to this investment philosophy. I think that that pretty much wraps things up. Um, our, our goal, our objective today is very clear and, uh, appreciate, uh, Nate being on the line today and sharing, uh, an example with us.

And, uh, we have a mul, a multitude of additional examples that, uh, him and, and the account executive team can share with you as you, as you call. So, Nate, any last words? Yeah, give us a call. We’ll, we’ll take it property by property and case by case and really lay out your options and what it would look like, and so it’s really customized for you.

So yeah, we’d love to chat. Awesome. All right everybody, thank you so much for tuning in. Thank you Nate, for joining us. Thank you as always, Steve and uh, make sure you. Check out the website, chat with us, shoot us an email, give us a call. However, we can serve you. We stand ready to do just that. So we’ll sign off for now and we’ll talk to you real soon.

Have a great day. Thanks so much for listening to replace Your Income with Steven. Kevin, if you’re not subscribed already, be sure to head over to your favorite podcasting platform and do that. If you enjoyed this episode, we’d love it if you could do us a quick favor and rate and review the podcast on Apple Podcasts.

This lets the platform know that we’re doing something right and that people like the content. It’d be a huge help and we would be super grateful. Also, be sure to head over to df y dash real estate.com and request your free income replacement estimate. We’ll jump on a quick call and put a free and person.

Income replacement estimate report together for you. Your report will show you a step-by-step plan of how you can begin replacing your income one property at a time, starting right away with the resources you already have. It only takes a few minutes, but could change the trajectory of your entire financial future.

So until next time, just remember income replacement for you and your family may only be one property away. See you next week.